PBOC Guides Yuan Above 6.7 Threshold as Trade Tensions Ease

The People's Bank of China (PBOC) has set the yuan midpoint higher for the eighth consecutive day, breaking above the 6.7 threshold in both onshore and offshore markets.

The yuan strengthened against the US dollar as the Fed kicked off its rate-hike cycle, with the PBOC raising the central parity rate to 6.7521, a 59-basis-point increase from the previous day's level.

This move marks the longest streak of consecutive appreciation since 2023 and indicates that the central bank is guiding the yuan higher while still retaining control over its value.